Bahrain Employment Guide

Navigating Employee Termination in Bahrain: A Guide for Employers

Terminating an employment contract in Bahrain requires careful adherence to local labor laws to ensure compliance and avoid legal disputes. For employees who have completed their probation period, employers cannot terminate contracts arbitrarily; valid grounds must be established. Legitimate termination scenarios include:

• Voluntary resignation by the employee
• Mutual agreement between both parties
• Expiration of the contract term
• Employer-initiated termination based on:
  • Performance during the probation period
  • Objective business reasons, such as restructuring
  • Disciplinary dismissals for misconduct
  • Incompetence or consistent underperformance

Notice Period Requirements

After the probation period ends, the minimum notice period is one month. During probation, a shorter notice of just one day applies. For example, SailGlobal ensures these timelines are clearly outlined in employment agreements to prevent misunderstandings.

Understanding End-of-Service Benefits

In Bahrain, all terminated employees are entitled to end-of-service benefits, calculated based on their length of service. This incentivizes long-term commitment and provides a safety net for workers. The calculation is as follows:

• For service under 3 years: 50% of the monthly salary per year of service
• For service exceeding 3 years: 100% of the monthly salary per year of service

Consider a case where an employee earning $2,000 monthly leaves after 4 years; they would receive $8,000 in benefits. SailGlobal assists companies in automating these calculations to ensure accuracy and fairness.